Toronto Stock Exchange
Word that Greece could finally be nearing an end to its debt catastrophe helped lift global markets for the Jan. 16-20 period and the S&P/TSX Composite Index was no exception, gaining 165 points to finish at 12,397.10.
Gold continued on its strong run as it was up US$30 to US$1,664 per oz. Despite that strength, however, gold miners failed to rally and the S&P/TSX Global Gold Index fell 15 points to 365.57.
It was a different story for diversified miners. The S&P/TSX Capped Diversified Metals & Mining Index was up roughly 50 points to 1,233.75 points as the prices for copper, aluminum, nickel, tin, zinc and lead were all higher.
Kinross Gold took a tumble as its shares fell 20% to $10.36 after saying it will write down its Tasiast mine in Mauritania. Kinross acquired the asset when it bought Red Back Mining in 2010 for
$8 billion. The asset had a book value of $7.1 billion, with $4.6 billion of that being goodwill – the amount it paid above
the asset’s determinable value in the acquisition.
A construction permit for its Azulcocha zinc mine in Peru helped make Vena Resources the biggest percentage gainer as its share price surged 70% to 34¢. Vena and its partner at the project, Trafigura, will start a plant tune-up in February from a stockpile of 25,000 tonnes. From there the companies plan to increase plant throughput to 500 tonnes per day. After that, permits permitting, they will push capacity up to 2,000 tonnes per day by year-end.
Strong intercepts at its Altan Nar project in Mongolia had Erdene Resource Development shares up 47% to 50¢.
The company announced a highlight intercept of 29 metres grading 4.3 grams gold and 24.1 grams silver per tonne and reported that 10 of its 11 new drill holes hit gold, silver, lead, zinc and copper mineralization.
The drill was also kind to Cluff Gold at its Yaoure project in Côte d’Ivoire. The London-based miner sent the drill bit down into a sulphide zone and pulled out highlight intercepts of 28.3 metres grading 3.24 grams gold and 31.6 metres of 1.97 grams gold. The results had the company bullish on its prospects for increasing the resources for the project later this year. Its share price climbed 45% to $1.60.
Word that Energizer Resources had made a large-scale graphite discovery at its Green Giant project in Madagascar helped bolster the company’s share price by 35% to 23¢. The company is calling
the area a potential graphite camp and said it hosts the most desirable form of the material – large flake graphite. It reported a highlight assay of 61.4 metres of 7.46%
carbon.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Kinross GoldK6427113.2010.0810.36-2.55
Grande Cache CGCE286729.958.769.21-0.73
Uranium OneUUU262822.952.422.78+0.41
Lundin MngLUN233435.334.525.09+0.56
Paladin EnergyPDN213981.981.591.89+0.32
Crocodile GoldCRK187180.550.530.550.00
Cline MngCMK174142.271.852.10+0.21
Barrick GoldABX1482749.9445.9546.52-2.92
Denison MinesDML140891.981.601.96+0.35
Capstone MngCS137673.452.953.44+0.42
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Vena ResVEM20620.350.190.34+70.0
Delrand ResDRN1140.360.330.35+59.0
Erdene Res DevERD11790.650.340.50+47.0
Cluff GoldCFG371.601.231.60+45.4
First UraniumFIU43210.290.190.28+40.0
Energizer ResEGZ7940.250.170.23+35.2
BioteQ EnvBQE53090.340.190.24+33.3
Northland ResNAU2061.981.531.96+30.6
Redhawk ResRDK7830.570.430.56+30.2
Mega UraniumMGA79190.380.280.35+29.6
Calvista GoldCVZ970.620.450.47-25.4
North Am PallPDL54873.252.282.37-24.2
PC GoldPKL50160.480.350.38-20.8
Red Cresc ResRCB1010.290.200.20-20.0
Kinross GoldK6427113.2010.0810.36-19.7
Chalice Gold MCXN860.290.250.25-16.6
Evolving GoldEVG7000.410.330.33-15.3
Africo ResARL190.800.670.68-15.0
Primero MngP13923.783.083.15-13.7
Dejour EnterpDEJ5800.450.400.40-13.0
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Walter EnergyWLT4142067.30+7.30
Cameco CorpCCO721039723.30+2.65
Teck BTCKB1089011041.93+2.58
Labdr I-Ore RoLIF_U39981638.65+2.04
AgriumAGU314712781.00+1.87
Franco-NevadaFNV285336041.77+0.97
Imperial MetalIII29490013.79+0.80
Alamos GoldAGI204692917.84+0.79
Labdr Iron MnsLIM39330615.60+0.79
HudBay MinlsHBM270136811.29+0.78
Barrick GoldABX1482720446.52-2.92
Kinross GoldK6427135810.36-2.55
Agnico-EagleAEM372621335.55-2.33
IAMGold CorpIMG713070815.82-1.51
Inmet MiningIMN117855565.29-1.50
Royal GoldRGL1289768.43-1.05
Horizns G BullHGU286501311.90-1.03
Ivanhoe MinesIVN385743019.33-0.97
Detour GoldDGC155201927.04-0.94
Karnalyte ResKRN1522729.36-0.85
TSX Venture Exchange
The S&P/TSX Venture Composite Index climbed 35.31 points in the Jan. 16-20 trading period to end at 1,571.34 after four days of gains and one day of losses. Volume averaged 93 million shares traded daily.
Impressive drill results led to the trading of 26.8 million Calibre Mining shares, making it the most actively traded stock. Results from the company’s Primavera gold-copper prospect in Nicaragua included 261.7 metres grading 0.78 gram gold per tonne and 0.3% copper, 276.8 metres averaging 0.5 gram gold and 0.22% copper, and 123.9 metres carrying 0.65 gram gold and 0.28% copper, all essentially from surface. Calibre’s stock price more than doubled on the news, climbing 20¢ to end at a four-year high of 38¢. B2Gold is working to earn 51% of the prospect and is now operator.
Unigold also saw a more than doubling of its share price at one point following strong results from western Dominican Republic. The company’s share price went from 17¢ to a high of 35¢ before settling at 29¢ with 12.5 million shares traded. Unigold released four drill holes from the Candelones extension at its Neita property, with standout hole 17 returning 73 metres grading 2.36 grams gold from 252 metres depth.
Northern Freegold Resources saw some good share price movement after releasing an initial resource on the Revenue deposit of its Freegold Mountain project in the Yukon. The company’s stock price went from 19¢ to 33¢ after hitting a trading high of 37¢ with 5.2 million shares traded. The resource established 101 million inferred tonnes of 0.34 gram gold, 3.14 grams silver per tonne, 0.13% copper and 0.04% molybdenum for a contained 1.1 million oz. gold, 10.2 million oz. silver, 287 million lbs. copper, and 90 million lbs. moly.
Abitibi Royalties was the second highest value gainer, climbing 55¢ to end at $1.95 on 24,500 shares traded after reporting a resource estimate on the Jeffrey zone at the Malartic CHL property. The Jeffrey zone, 550 metres east of Osisko Mining’s Canadian Malartic main pit, is estimated to contain 5.81 million indicated tonnes at 0.7 gram gold for 130,760 oz. gold, plus 1.8 million inferred tonnes at 0.58 gram gold for 32,820 oz. gold. Abitibi Royalties owns a 30% free carried interest in the Malartic CHL property, while Osisko owns the rest.
Goldbrook Ventures climbed 12¢ to 36¢ with 6.7 million shares traded after agreeing to a 39¢ all-cash takeover offer from Jilin Jien Nickel. The two companies had been locked in a long-standing legal dis
pute over a 25% stake in the Nunavik nickel project in northern Quebec. Multiple rulings have found in favour of Goldbrook’s right to the 25%, leading Jilin to make an earlier buyout offer of 30¢ a share. The lesser offer was rejected by Goldbrook, but it has endorsed the latest bid.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Calibre MngCXB267810.430.170.38+0.20
UnigoldUGD125290.350.170.28+0.12
Forum UraniumFDC113710.100.090.10+0.01
Solitaire MnlsSLT107940.040.030.04+0.01
Purepoint UPTU91590.140.090.14+0.02
Foundation ResFDN79160.170.110.14+0.03
Iberian MnlsIZN77301.111.091.090.00
Royal CoalRDA67220.050.050.050.00
Goldbrook VentGBK66500.360.220.35+0.11
Redhill ResRHR66380.140.110.12+0.02
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Z-Gold ExplZGG1280.120.050.12+140.0
Arctic Hntr UrAHU140.170.170.17+112.5
Calibre MngCXB267810.430.170.38+111.1
Touchdown ResTDW47620.090.050.08+100.0
Firesteel ResFTR1390.070.060.06+100.0
Metropolitn MgMNZ920.300.250.29+93.3
UnigoldUGD125290.350.170.28+75.0
Colstar VentCTR1250.190.090.19+72.7
Cavan VentCVN9370.050.020.05+66.6
Northern FreegNFR51570.370.190.33+65.0
Sable ResSAE210.140.110.11-38.8
Bravura VentBVQ400.100.090.09-35.7
Visible Gold MVGD21480.180.110.12-33.3
Q-Gold ResQGR16600.030.020.02-33.3
Whetstone MnlsWMI470.110.090.09-30.7
Revolver ResRZ150.100.100.10-28.5
Teslin Rvr ResTLR2750.100.070.08-27.2
Jasper MngJSP790.200.150.15-25.0
Curlew Lke ResCWQ5570.030.020.03-25.0
Atocha ResATT1060.040.030.03-25.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Lumina CopperLCC21939613.89+0.68
Abitibi RoyaltRZZ228061.95+0.55
Prophecy PlatNKL5502713.24+0.55
Mirasol ResMRZ1442344.10+0.45
Gold CanyonGCU13516062.31+0.41
Callinan RoyalCAA4419803.18+0.30
D Arianne ResDAN12739471.26+0.30
Afferro MngAFF456621.15+0.29
Northern GraphNGC12481041.32+0.25
Cayden ResCYD702002.33+0.24
Chesapeake GldCKG1785639.75-0.32
Loncor ResLN1361001.50-0.30
Grayd ResGYD434002.35-0.25
Tigray ResTIG2699451.06-0.21
Kaminak GoldKAM18444821.99-0.20
St Elias MnsSLI60648911.07-0.18
Sarama ResSWA945000.50-0.15
Highvista GoldHVV450000.45-0.13
Southern ArcSA9788510.50-0.13
Troon VentTVN670000.58-0.12
U.S. markets
Signs that Greece was nearing a deal with private bond holders and better-than-expected gross domestic product growth in China were the week’s key macro-events.
China’s economy grew 8.9% in the fourth quarter of 2011, down from 9.1% in the third quarter, but still above analysts’ estimates, encouraging hope that China can avoid a hard landing. U.S. markets were closed on Jan. 16 for Martin Luther King Jr. Day. When they re-opened the Dow Jones Industrial Average Index climbed 2.4% to end the week at 12,720.48. The S&P Index rose 2.04% to 1,315.38. The Philadelphia Gold and Silver Index fell 3.05% to 187.02, while the New York spot price for gold rose by US$27.30 per oz. or 1.67% to close at US$1,667.00 per oz. After falling by about 21% in 2011, copper prices touched a four-month high on Jan. 19.
Freeport McMoRan Copper & Gold closed up US$1.10 to US$43.10 per share, despite reporting a 59% drop in fourth-quarter profit to US$640 million, or US67¢ a share, down from US$1.55 billion or US$1.63 a share, in the year-earlier quarter. Revenue slid 26% to US$4.16 billion from US$5.6 billion.
BHP Billiton shares rose US$3.20 per share to US$78.15 on news that the company booked nearly a 700% increase in resource tonnage at its Spence copper mine in Chile. The company reported on Jan. 18 that the total oxide resource grew to 64 million tonnes at an average grade of 1.01% copper with a total resource of supergene sulphide at 222 million tonnes grading 0.91% copper.
Shareholders of US Gold and Minera Andes voted to approve a merger of the two companies, which drove the shares of both companies up. US Gold gained 18% to close at US$4.98 per share while Minera Andes advanced 17.9% to close at US$2.23 per share.
On the negative side of the ledger, shares of Kinross Gold plunged 19.2% or US$2.44 to end the week at US$10.21 per share. The gold producer announced that about six to nine months of additional analysis and planning are required to determine the optimum processing mix for its Tasiast gold deposit in Mauritania. It also said feasibility studies at its Fruta del Norte project in Ecuador and Lobo-Marte project in Chile would also be delayed in order to optimize capital costs.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA10107510.239.7010.17+0.37
Freeport McMo*FCX9626344.9742.4243.10+1.10
Kinross Gold*KGC7534611.239.9610.21-2.44
Alpha Nat Res*ANR4072620.5018.7419.91-0.28
Potash C Sask*POT3725046.1044.6044.75+0.08
Barrick Gold*ABX3656648.9445.3145.83-2.51
Newmont Mng*NEM3487163.5558.6659.27-4.12
Arch Coal*ACI3282514.4313.2813.87-0.26
Peabody Enrgy*BTU2711938.9334.6537.85+2.17
Goldcorp*GG2226646.4843.9744.98-0.39
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Uranium Res*URRE136861.140.811.08+35.0
Denison Mines*DNN6361.951.671.93+22.9
Minco Gold*MGH5800.960.820.94+18.9
US Gold*UXG24455.054.354.98+18.0
Minera Andes*MNEAF11042.271.932.23+17.9
Golden Phoen*GPXM18150.070.060.07+16.6
Infrastrc Mat*IFAM1900.090.060.07+16.6
Cardero Res*CDY8481.361.111.32+15.7
Kimber Res*KBX6531.321.111.27+15.4
Timmins Gold*TGD6092.552.202.49+15.2
Tombstone Exp*TMBXF2250.040.020.03-25.0
North Am Pall*PAL149233.212.252.34-24.2
Kinross Gold*KGC7534611.239.9610.21-19.2
Douglas Lk Ml*DLKM8330.110.090.10-16.6
Legend Intl H*LGDI5050.150.110.13-13.3
Primero Mng*PPP2143.573.083.10-12.9
Loncor Res*LON721.811.501.50-11.7
Dejour Enterp*DEJ4880.450.390.40-11.1
Bullion Monar*BULM2150.780.610.68-10.5
Brigus Gold*BRD4711.321.121.13-8.1
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Walter Energy*WLT247757566.39+7.64
BHP Billi-BBL*BBL511463866.33+3.80
BHP Billi-BHP*BHP1441290078.15+3.20
Teck B*TCK1154254641.32+2.86
Cameco Corp*CCJ1617837822.99+2.81
Agrium*AGU132808180.01+2.70
Soc Quim&M Ch*SQM136296457.48+2.42
Mesabi Trust*MSB87728533.47+2.26
Peabody Enrgy*BTU2711850237.85+2.17
Yanzhou Coal*YZC61752824.50+2.08
Newmont Mng*NEM3487097459.27-4.12
Barrick Gold*ABX3656593245.83-2.51
Kinross Gold*KGC7534577610.21-2.44
Agnico-Eagle*AEM781445435.14-1.87
Buenaventura*BVN283306838.04-1.73
Consol Energy*CNX2008515633.02-1.31
North Am Pall*PAL149232932.34-0.75
Ivanhoe Mines*IVN1443012819.10-0.74
New Gold*NGD91883629.96-0.56
Primero Mng*PPP2138083.10-0.46
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